This invention relates generally to processing electronic disbursements and, more particularly, to network-based methods and systems for processing electronic disbursements over a payment card network for a business entity electronically disbursing funds to a consumer.
In today's business world, there are times when a consumer must make a payment to a merchant or business entity for a purchase of goods or service, but there are also times when a merchant or business entity is required to make a payment to a consumer. Businesses such as insurance companies, governmental entities, and other companies may be required during their normal business operations to make a payment to a consumer.
For example, many insurance companies will issue homeowners insurance policies to consumers. If such a policyholder having an insurance policy issued by Insurance Company A suffers damage to his or her home as a result of a fire, then Insurance Company A may be required to pay funds to the homeowner under that insurance policy. Those funds may include money for temporary living expenses that are needed by the homeowner while the home is being repaired. It may be important that these temporary living expenses funds are paid out quickly to the homeowner so that the homeowner can quickly arrange for living accommodations for himself and his family.
In at least some known situations, Insurance Company A would investigate the claim, submit the claim, process the claim, and issue a paper check to the homeowner for these living expenses. Issuing a paper check in this known situation is both expensive and time consuming.
In fact, it is estimated that today 95% of all businesses (e.g., insurance companies, governmental entities, and other business) making payments to consumers are made by checks that are expensive to manage the printing, replacement, and operations costs. In many cases, there is not a viable alternative solution for making such payments.
Accordingly, a quicker and more efficient process for business to make payments to consumers is needed. A process and system is needed that enables businesses to electronically disburse funds to consumers.